US-Iran deal lowers US
gasoline prices below $4 per gallon.
US gasoline prices have fallen below $4 per gallon for the first time in three months, as global oil prices retreat following the US-Iran agreement to end hostilities and reopen the Hormuz Strait.
The typical price of a gallon of regular gasoline was $3.99 on June 18. This price remains about 34% higher than the pre-conflict level in the Middle East.
Global oil prices fell after US President Donald Trump and his Iranian counterpart Masoud Pezeshkian signed the ceasefire agreement to end hostilities and reopen the Hormuz Strait to oil tankers and other vessels.
The conflict had driven energy prices higher, as Iran's retaliatory actions included blocking the Hormuz Strait, a critical waterway that normally transports around 20% of the world's oil and gas.
US consumer prices had been rising for years, and the energy-price shock has pushed inflation higher than the Fed's target.
In a recent meeting, the new chair of the US Federal Reserve, Kevin Warsh, stated that the central bank would stabilize prices, with some policymakers signaling an imminent rate increase.
The Fed's long-run inflation target is 2%, but prices have exceeded this target for more than five years.
